I had the same problem after switching from the xserver-xorg-video-ati
driver to fglrx and then back to xserver-xorg-video-ati after
experiencing a memory leak:

https://bugs.launchpad.net/ubuntu/+source/fglrx-installer/+bug/1354350

The problem was the fglrx package installs this file:

/etc/modprobe.d/fglrx-core.conf

Which includes this line:

blacklist radeon

Which blacklists the open source radeon driver. I removed
/etc/modprobe.d/fglrx-core.conf, rebooted, and my problem was fixed.
xrandr was able to see all available resolutions as well as it was able
to see multiple monitors.

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https://bugs.launchpad.net/bugs/1364078

Title:
  Cannot set screen resolution above 1400x1050

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